PepsiCo has outperformed expectations with a 2.2 % organic turnover growth. Especially a growing sparkling water department pushed the FMCG producer forward on its way to achieving its own predictions.
The company's turnover rose to 16.5 billion dollars (15 billion euros), while net profit went up from 1.8 to 2 billion dollars (1.8 billion euros). PepsiCo suffered from adverse exchange rates however: without them, turnover growth would have been 4.5 %.
These results, and the progress PepsiCo says to make in "strategic priorities", make new CEO Ramon Laguarta believe that the targets for the full year 2019 will be reached as well: "We cannot see any signals that tells us that the consumer is slowing down, at least in our categories", the CEO mentioned in a conference call. Laguarta has been PepsiCo's CEO since he took over from Indra Nooyi last October. Under his lead, the company hopes to achieve a 4 % turnover growth. Profits however are expected to go down 1 %.
Surfing on the trend towards healthier food products, PepsiCo expecs a lot from its sparkling water brand Bubly, which Laguarta hopes will be his company's latest billion dollar brand.